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To: peter michaelson who wrote (594)	5/23/1999 3:08:00 PM
From: westes	Read Replies (1) \| Respond to of 1149

Generally my rule of thumb is to never invest more than 5% of my money in any one holding. But there is a more interesting question here: if some investment grows to be more than 5%, does portfolio theory say you should divest out of that holding as it rises? It seems to me that is a mistake. In most portfolios that end up making really good money, you have maybe eight to twenty holding, and maybe two or three of those become rocket ships that make 10x your money. In other words, your return is really concentrated a very small number of superb performers. It's best to let those run, even if they become more than 5%.